A fire in February engulfed Nutrien Ag Solutions’ fertiliser warehouse at Kwinana and disrupted operations at the site, as well as negotiations to extend the lease from the Fremantle Port Authority. Source: Department of Fire and Emergency Services WA

LEADING fertiliser supplier Nutrien Ag Solutions can remain at its Kwinana facility for a further two years after finalising an agreement with Fremantle Port Authority as the site owner.

Nutrien was set to be evicted from its site at the Kwinana Bulk Jetty on April 30 when the lease was due to expire, and talks on a new agreement failed.

The company successfully petitioned the Western Australian Supreme Court to put a stay on the eviction request pending the results of a hearing scheduled for July 15.

Nutrien has this week confirmed an agreement has been reached between both parties, putting an end to the legal proceedings.

“Fremantle Ports has reached mutually-agreed terms with Nutrien to lease the existing shed at Kwinana Bulk Jetty to Nutrien for two years. Legal action has been suspended indefinitely,” an FPA spokesperson has advised.

Nutrien Ag Solutions region director west Andrew Duperouzel said in a statement that the company welcomed the end to court action.

“This development gives a welcome level of certainty as we work with farmers to plan for their future fertiliser needs,” Mr Duperouzel said.

He said that despite recent developments, Nutrien was not about to leave the WA market.

“Nutrien is strongly committed to bulk fertiliser in WA and we’re continuing to invest in our assets, people and expertise.”

According to court documents, Nutrien and FPA had been engaged in discussions around continuing the lease agreement since mid-2019.

Discussions were put on hold following a fire that broke out at the Kwinana Bulk Jetty on February 9.

The fire caused significant damage to the import system conveyor, associated transfer towers and a shed leased by Nutrien to store fertiliser.

To continue operations, Nutrien announced an agreement with CSBP Fertilisers, which also operates a distribution centre at Kwinana, to use its facilities to receive and dispatch imported product from two vessels.

FPA has advised it is working to remediate the conveyor system in a modified manner so it can continue to be used.

In court documents, FPA indicated it saw no economic benefit in repairing, rebuilding or demolishing the shed, as the works did not meet its “future strategic objectives to develop the area to be efficient common user infrastructure”.

Nutrien is pressing ahead as a supplier of fertiliser to the WA market.

“We know that markets can be volatile, and uncontrollable events, global markets and port congestion can put further pressure on the supply chain,” Mr Duperouzel said.

“It’s important farmers continue to have early conversations with their agronomist or farm advisor about their input needs for the season ahead, so we can forward plan and do everything we can to alleviate any disruptions or impacts across the broader supply chain.”

Westport progresses

The update comes as the WA Government takes another step forward with its major Outer Harbour Port Development at Kwinana.

An artist’s impression of the proposed Westport container terminal at Kwinana. Source: WA Government

The long-term project, also known as Westport, aims to moving container trade 23km south from Fremantle to Kwinana, and features significant rail and road freight upgrades and a new logistics hub.

This week the Federal Government called for public comment on the project as part of the environmental assessment process under the EPBC Act.

It is the first stage of assessment under the process.

In November, the WA Government identified a preferred design for the new port and freight infrastructure with a finalised business case including recommendations for timings and costings expected in mid-2024.